Classification of Cloud Transactions and Transactions Involving Digital Content; Correction, 52410-52411 [2019-21034]
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52410
Federal Register / Vol. 84, No. 191 / Wednesday, October 2, 2019 / Proposed Rules
Paragraphs (a)(4)(i) and (vi) of this
section apply to taxable years of foreign
corporations ending on or after October
1, 2019, and taxable years of United
States persons ending on or after
October 1, 2019. For taxable years of
foreign corporations ending before
October 1, 2019, and taxable years of
United States persons ending before
October 1, 2019, a taxpayer may apply
such provisions to the last taxable year
of a foreign corporation beginning
before January 1, 2018, and each
subsequent taxable year of the foreign
corporation, and to taxable years of
United States shareholders in which or
with which such taxable years of the
foreign corporation end, provided that
the taxpayer and United States persons
that are related (within the meaning of
section 267 or 707) to the taxpayer
consistently apply such provisions with
respect to all foreign corporations.
■ Par. 10. Section 1.958–2 is amended
by:
■ 1. Removing and reserving paragraph
(d)(2).
■ 2. In paragraph (g), designating
Examples 1 through 6 as paragraphs
(g)(1) through (6), respectively.
■ 3. In newly designated paragraphs
(g)(1) and (2), removing the language
‘‘paragraph (c)(1)(iii) and (2) of this
section’’ and adding ‘‘paragraphs
(c)(1)(iii) and (c)(2) of this section’’ in its
place.
■ 4. Revising newly designated
paragraph (g)(4).
■ 5. Adding paragraph (h).
■ 6. Removing the parenthetical
authority citation at the end of the
section.
The revisions and addition read as
follows:
§ 1.958–2
stock.
khammond on DSKJM1Z7X2PROD with PROPOSALS
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Constructive ownership of
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(g) * * *
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(4) Example 4. Foreign corporation U owns
100 percent of the one class of stock in
domestic corporation V and also 100 percent
of the one class of stock in foreign
corporation W. Because more than 50 percent
in value of the stock of V Corporation is
owned by its sole shareholder, U
Corporation, V Corporation is considered
under paragraph (d)(1)(iii) of this section as
owning the stock owned by U Corporation in
W Corporation, and accordingly is a United
States shareholder of W Corporation.
*
*
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*
(h) Applicability date. Paragraphs
(d)(2) and (g)(4) of this section apply to
taxable years of foreign corporations
ending on or after October 1, 2019, and
taxable years of United States
shareholders in which or with which
such taxable years of foreign
VerDate Sep<11>2014
16:10 Oct 01, 2019
Jkt 250001
corporations end. For taxable years of
foreign corporations ending before
October 1, 2019, and taxable years of
United States shareholders in which or
with which such taxable years of foreign
corporations end, a taxpayer may apply
such provisions to the last taxable year
of a foreign corporation beginning
before January 1, 2018, and each
subsequent taxable year of the foreign
corporation, and to taxable years of
United States shareholders in which or
with which such taxable years of the
foreign corporation end, provided that
the taxpayer and United States persons
that are related (within the meaning of
section 267 or 707) to the taxpayer
consistently apply such provisions with
respect to all foreign corporations.
■ Par. 11. Section 1.1297–1, as
proposed to be added at 84 FR 33120
(July 11, 2019), is amended by revising
paragraphs (d)(1)(iii)(A) and (g)(1) to
read as follows:
§ 1.1297–1 Definition of passive foreign
investment company.
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*
*
*
*
(d) * * *
(1) * * *
(A) Controlled foreign corporation.
For purposes of section 1297(e)(2)(A),
the term controlled foreign corporation
has the meaning provided in section
957, determined without applying
subparagraphs (A), (B), and (C) of
section 318(a)(3) so as to consider a
United States person as owning stock
which is owned by a person who is not
a United States person.
*
*
*
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*
(g) * * *
(1) Paragraph (d)(1)(iii)(A) of this
section. Paragraph (d)(1)(iii)(A) of this
section applies to taxable years of
shareholders ending on or after October
1, 2019. For taxable years of
shareholders ending before October 1,
2019, a shareholder may apply
paragraph (d)(1)(iii)(A) of this section to
the last taxable year of a foreign
corporation beginning before January 1,
2018, and each subsequent taxable year
of the foreign corporation, provided that
the shareholder and United States
persons that are related (within the
meaning of section 267 or 707) to the
taxpayer consistently apply such
paragraph with respect to all foreign
corporations.
*
*
*
*
*
■ Par. 12. Section 1.6049–5 is amended
by revising paragraphs (c)(5)(i)(C) and
(g) to read as follows:
§ 1.6049–5 Interest and original issue
discount subject to reporting after
December 31, 1982.
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Frm 00027
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Fmt 4702
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Sfmt 4702
(c) * * *
(5) * * *
(i) * * *
(C) A controlled foreign corporation
within the meaning of section 957,
determined without applying
subparagraphs (A), (B), and (C) of
section 318(a)(3) so as to consider a
United States person as owning stock
which is owned by a person who is not
a United States person.
*
*
*
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*
(g) Applicability dates. Except as
otherwise provided in this paragraph
(g), this section applies to payments
made on or after January 6, 2017. (For
payments made after June 30, 2014, and
before January 6, 2017, see this section
as in effect and contained in 26 CFR
part 1, as revised April 1, 2016. For
payments made after December 31,
2000, and before July 1, 2014, see this
section as in effect and contained in 26
CFR part 1, as revised April 1, 2013.)
Paragraph (c)(5)(i)(C) of this section
applies to payments made on or after
October 1, 2019. For payments made
before October 1, 2019, a taxpayer may
apply paragraph (c)(5)(i)(C) of this
section for payments during the last
taxable year of a foreign corporation
beginning before January 1, 2018, and
each subsequent taxable year of the
foreign corporation, provided that the
taxpayer and United States persons that
are related (within the meaning of
section 267 or 707) to the taxpayer
consistently apply such paragraph with
respect to all foreign corporations.
Kirsten Wielobob,
Deputy Commissioner for Services and
Enforcement.
[FR Doc. 2019–20567 Filed 10–1–19; 8:45 am]
BILLING CODE 4830–01–P
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG–130700–14]
RIN 1545–BM41
Classification of Cloud Transactions
and Transactions Involving Digital
Content; Correction
Internal Revenue Service (IRS),
Treasury.
ACTION: Correction to a notice of
proposed rulemaking.
AGENCY:
This document contains a
correction to a notice of proposed
rulemaking (REG–130700–14) that was
published in the Federal Register on
August 14, 2019. The proposed
SUMMARY:
E:\FR\FM\02OCP1.SGM
02OCP1
52411
Federal Register / Vol. 84, No. 191 / Wednesday, October 2, 2019 / Proposed Rules
regulations relate to classification of
cloud transactions for purposes of the
international provisions of the Internal
Revenue Code.
DATES: Written or electronic comments
and requests for a public hearing are
still being accepted and must be
received by November 12, 2019.
ADDRESSES: Submit electronic
submissions via the Federal
eRulemaking Portal at https://
www.regulations.gov (indicate IRS and
REG–130700–14) by following the
online instructions for submitting
comments. Once submitted to the
Federal eRulemaking Portal, comments
cannot be edited or withdrawn. The
Department of the Treasury (Treasury
Department) and the IRS will publish
for public availability any comment
received to its public docket, whether
submitted electronically or in hard
copy. Send hard copy submissions to
CC:PA:LPD:PR (REG–130700–14), Room
5203, Internal Revenue Service, P.O.
Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions
may be hand-delivered Monday through
Friday between the hours of 8 a.m. and
4 p.m. to CC:PA:LPD:PR (REG–130700–
14), Courier’s Desk, Internal Revenue
Service, 1111 Constitution Avenue NW,
Washington, DC 20224.
FOR FURTHER INFORMATION CONTACT:
Concerning the proposed regulations
Robert Z. Kelley, (202) 317–6939;
concerning submissions of comments
and requests for a public hearing, email
or call Regina L. Johnson at
fdms.database@irscounsel.treas.gov or
(202) 317–6901 (not toll-free numbers).
SUPPLEMENTARY INFORMATION:
Background
The proposed regulations that are the
subject of this correction are under
section 861 of the Internal Revenue
Code.
*
(c)(3), second sentence
*
§ 1.861–18
*
*
As published, the notice of proposed
rulemaking (REG–130700–14) contains
errors which may prove to be
misleading and need to be clarified.
*
[Corrected]
3. On page 40324, in the table for
§ 1.861–18, for the paragraph listed in
‘‘Paragraph’’ column, remove the
language in the ‘‘Remove’’ column, and
add in its place the language in the
‘‘Add’’ column.
[Corrected]
5. On page 40325, third column, in
§ 1.861–18, the second line of paragraph
(i), the language ‘‘to transactions
involving the transfer of’’ is corrected to
read ‘‘to transactions not subject to
§ 1.861–19 involving the transfer of’’.
Crystal Pemberton,
Senior Federal Register Liaison, Publications
and Regulations Branch, Legal Processing
Division, Associate Chief Counsel, (Procedure
and Administration).
*
*
*
DEPARTMENT OF HOMELAND
SECURITY
Coast Guard
31 CFR Part 800
33 CFR Part 100
RIN 1505–AC64
[Docket Number USCG–2018–0749]
Provisions Pertaining to Certain
Investments in the United States by
Foreign Persons
Correction
In proposed rule document 2019–
20099 beginning on page 50174 in the
issue of Tuesday, September 24, 2019,
make the following correction:
On page 50174, in the first column, in
the 23rd line, ‘‘October 24, 2019’’
should read ‘‘October 17, 2019’’.
[FR Doc. C1–2019–20099 Filed 10–1–19; 8:45 am]
BILLING CODE 1301–00–D
BILLING CODE 4830–01–P
Jkt 250001
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any medium.
Office of Investment Security
[FR Doc. 2019–21034 Filed 10–1–19; 8:45 am]
16:10 Oct 01, 2019
Add
DEPARTMENT OF THE TREASURY
■
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[Corrected]
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the magnetic medium of a floppy disk, or in the main memory or hard drive of a computer,
or in any other medium.
4. On page 40324, second column, in
§ 1.861–18, the seventh through ninth
line from the top of paragraph (a)(3), the
language ‘‘passage of time, whether or
not the content is transferred in a
physical medium. For example, digital
content’’ is corrected to read ‘‘passage of
time. For example, digital content’’.
VerDate Sep<11>2014
§ 1.861–18
Remove
■
§ 1.861–18
Accordingly, the notice of proposed
rulemaking (REG–130700–14) that was
the subject of FR Doc. 2019–17425,
published at 84 FR 40317 (August 14,
2019), is corrected to read as follows:
1. On page 40320, first column, in the
preamble, the sixteenth and seventeenth
lines from the top of the second full
paragraph, the language ‘‘of time,
whether or not the content is transferred
in a physical medium.’’ is corrected to
read ‘‘of time.’’
2. On page 40321, third column, in
the preamble, the fourteenth line from
the top of the second full paragraph, the
language ‘‘licenses, and services, but
there are’’ is corrected to read, ‘‘licenses,
leases, and services, but there are’’.
■
Need for Correction
Paragraph
Correction of Publication
PO 00000
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Fmt 4702
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RIN 1625–AA08
Special Local Regulations; Recurring
Marine Events, Sector Miami
Coast Guard, DHS.
Notice of proposed rulemaking.
AGENCY:
ACTION:
The Coast Guard proposes to
revise existing regulations and
consolidate into one table special local
regulations for recurring marine events
at various locations within the
geographic boundaries of the Seventh
Coast Guard District Captain of the Port
(COTP) Miami Zone. Consolidating
marine events into one table simplifies
Coast Guard oversight and public
notification of special local regulations
within COTP Miami Zone. The Coast
Guard invites your comments on this
proposed rulemaking.
SUMMARY:
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]]>Agencies
[Federal Register Volume 84, Number 191 (Wednesday, October 2, 2019)]
[Proposed Rules]
[Pages 52410-52411]
From the Federal Register Online via the Government Publishing Office [www.gpo.gov]
[FR Doc No: 2019-21034]
-----------------------------------------------------------------------
DEPARTMENT OF THE TREASURY
Internal Revenue Service
26 CFR Part 1
[REG-130700-14]
RIN 1545-BM41
Classification of Cloud Transactions and Transactions Involving
Digital Content; Correction
AGENCY: Internal Revenue Service (IRS), Treasury.
ACTION: Correction to a notice of proposed rulemaking.
-----------------------------------------------------------------------
SUMMARY: This document contains a correction to a notice of proposed
rulemaking (REG-130700-14) that was published in the Federal Register
on August 14, 2019. The proposed
[[Page 52411]]
regulations relate to classification of cloud transactions for purposes
of the international provisions of the Internal Revenue Code.
DATES: Written or electronic comments and requests for a public hearing
are still being accepted and must be received by November 12, 2019.
ADDRESSES: Submit electronic submissions via the Federal eRulemaking
Portal at https://www.regulations.gov (indicate IRS and REG-130700-14)
by following the online instructions for submitting comments. Once
submitted to the Federal eRulemaking Portal, comments cannot be edited
or withdrawn. The Department of the Treasury (Treasury Department) and
the IRS will publish for public availability any comment received to
its public docket, whether submitted electronically or in hard copy.
Send hard copy submissions to CC:PA:LPD:PR (REG-130700-14), Room 5203,
Internal Revenue Service, P.O. Box 7604, Ben Franklin Station,
Washington, DC 20044. Submissions may be hand-delivered Monday through
Friday between the hours of 8 a.m. and 4 p.m. to CC:PA:LPD:PR (REG-
130700-14), Courier's Desk, Internal Revenue Service, 1111 Constitution
Avenue NW, Washington, DC 20224.
FOR FURTHER INFORMATION CONTACT: Concerning the proposed regulations
Robert Z. Kelley, (202) 317-6939; concerning submissions of comments
and requests for a public hearing, email or call Regina L. Johnson at
[email protected] or (202) 317-6901 (not toll-free
numbers).
SUPPLEMENTARY INFORMATION:
Background
The proposed regulations that are the subject of this correction
are under section 861 of the Internal Revenue Code.
Need for Correction
As published, the notice of proposed rulemaking (REG-130700-14)
contains errors which may prove to be misleading and need to be
clarified.
Correction of Publication
Accordingly, the notice of proposed rulemaking (REG-130700-14) that
was the subject of FR Doc. 2019-17425, published at 84 FR 40317 (August
14, 2019), is corrected to read as follows:
1. On page 40320, first column, in the preamble, the sixteenth and
seventeenth lines from the top of the second full paragraph, the
language ``of time, whether or not the content is transferred in a
physical medium.'' is corrected to read ``of time.''
2. On page 40321, third column, in the preamble, the fourteenth
line from the top of the second full paragraph, the language
``licenses, and services, but there are'' is corrected to read,
``licenses, leases, and services, but there are''.
Sec. 1.861-18 [Corrected]
0
3. On page 40324, in the table for Sec. 1.861-18, for the paragraph
listed in ``Paragraph'' column, remove the language in the ``Remove''
column, and add in its place the language in the ``Add'' column.
----------------------------------------------------------------------------------------------------------------
Paragraph Remove Add
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* * * * * * *
(c)(3), second sentence the magnetic medium of a any medium.
floppy disk, or in the main
memory or hard drive of a
computer, or in any other
medium.
* * * * * * *
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Sec. 1.861-18 [Corrected]
0
4. On page 40324, second column, in Sec. 1.861-18, the seventh through
ninth line from the top of paragraph (a)(3), the language ``passage of
time, whether or not the content is transferred in a physical medium.
For example, digital content'' is corrected to read ``passage of time.
For example, digital content''.
Sec. 1.861-18 [Corrected]
0
5. On page 40325, third column, in Sec. 1.861-18, the second line of
paragraph (i), the language ``to transactions involving the transfer
of'' is corrected to read ``to transactions not subject to Sec. 1.861-
19 involving the transfer of''.
Crystal Pemberton,
Senior Federal Register Liaison, Publications and Regulations Branch,
Legal Processing Division, Associate Chief Counsel, (Procedure and
Administration).
[FR Doc. 2019-21034 Filed 10-1-19; 8:45 am]
BILLING CODE 4830-01-P
